Regulations, 2000

L.N. 271 of 2000

VALUE ADDED TAX ACT

(CAP. 406)

Value Added Tax (Substitution of Part D of Fifteenth Schedule)

Regulations, 2000

IN exercise of the powers conferred by article 57 and article 75 of

the Value Added Tax Act, hereinafter referred to as "the Act", the

Minister of Finance has made the following regulations:-

(1) These regulations may be cited as the Value Added Tax

(Substitution of Part D of the Fifteenth Schedule) Regulations, 2000,

and shall be read and construed as one with the Fifteenth Schedule to

the Value Added Tax Act, which Fifteenth Schedule is hereinafter being

referred to in these regulations as "the Schedule".

(2)

These regulations shall come into force on 1st January,

2001.

For Part D of the Schedule there shall be substituted the

following

"Part D

Article 57 (2) (a)

Travel Agents

Interpretation

1. In this Part "travel agent" has the same meaning as is

assigned to it by article 2 of the Malta Travel and Tourism Services

Act (Cap. 409), or in any other Act which may be substituted

therefor, and shall include a tour operator: provided that when

applied to a person established outside Malta, the definition shall

be construed as if the reference to a licence were omitted.

Application

2. The provisions of this Part shall apply to the operations

of travel agents, where the travel agent deals with the customer in

his own name and uses the supplies and services of other persons

in the provision of travel facilities

Provided that this Part shall not apply to a travel agent who

acts only as an intermediary and merely makes a repayment of

expenses to another person in the name and for the account of the

traveller.

Services supplied to be deemed as a single transaction

All transactions performed by a travel agent for the benefit

of the traveller in connection with the journey shall be treated as a

single supply of services supplied by him to the traveller.

Place ofsupply

The place of supply of a travel agent shall be the place

where he is established.

Taxable value

The taxable value of supplies referred to in item 3 of this

Part made by a travel agent shall be the difference between the

cost of those supplies to the travel agent inclusive of value added

tax and the total price charged to the traveller exclusive of value

added tax, where the supplies are for the direct benefit of the

traveller

Provided that where a supply to a travel agent is required in

terms of this Act to be supported by a tax invoice, the cost of that

supply shall only be taken into account for the purposes of this

item if the travel agent holds such a tax invoice.

Input tax

Value added tax charged to the travel agent by other

registered persons on supplies made by those registered persons

to the travel agent for the direct benefit of the traveller shall not be

eligible for deduction or refund.

Powers of the Commissioner

The Commissioner may give such directives to, and

require such information from a travel agent as he may deem

necessary for the application of this Part.

Records

A travel agent shall keep, in addition to the records

required to be kept in terms of the other provisions of the Act,

such other records as may be necessary to readily ascertain the

amount of tax chargeable under this Part.".